SEGMENT REPORTING

3 Months Ended

Mar. 31, 2012

SEGMENT REPORTING

SEGMENT REPORTING

Our segments meeting the quantitative thresholds to be considered reportable are Shared Mail, Neighborhood Targeted and Free-standing Inserts (“FSI”). All other lines of business fall below a materiality threshold and are, therefore, combined together in an “other” segment named International, Digital Media & Services. These business lines include NCH Marketing Services, Inc., Valassis Canada, Inc., Promotion Watch, direct mail, analytics, digital and in-store. Our reportable segments are strategic business units that offer different products and services and are subject to regular review by our chief operating decision-maker. They are managed separately because each business requires different executional strategies and caters to different client marketing needs.

The accounting policies of the segments are the same as those described in the 2011 Form 10-K and Note 1, Basis of Presentation and Significant Accounting Policies. We evaluate reportable segment performance based on segment profit, which we define as earnings from operations excluding unusual or infrequently occurring items. Assets and nonoperating expenses are not allocated to reportable segments and are not used to assess the performance of a reportable segment.

The following table sets forth, by segment, revenues, depreciation/amortization and segment profit for the indicated periods:

	Three Months Ended
	March 31,
(in millions of U.S. dollars)	Shared Mail		Neighborhood Targeted			FSI		International, Digital Media & Services		Total
2012
Revenues from external customers	$	328.1	$	72.2		$	76.3	$	42.0	$	518.6
Intersegment revenues	$	4.5	$	13.0		$	10.0	$	—	$	27.5
Depreciation/amortization	$	8.3	$	1.1		$	3.2	$	2.1	$	14.7
Segment profit (loss)1	$	42.4	$	(1.6	)	$	5.4	$	2.7	$	48.9
2011
Revenues from external customers	$	322.6	$	90.1		$	89.2	$	45.1	$	547.0
Intersegment revenues	$	4.5	$	9.3		$	9.8	$	0.1	$	23.7
Depreciation/amortization	$	10.0	$	1.0		$	3.0	$	1.7	$	15.7
Segment profit1	$	42.1	$	1.9		$	7.4	$	5.4	$	56.8
1 Total segment profit is equivalent to Earnings from operations for the three months ended March 31, 2012 and 2011.

Domestic and foreign revenues were as follows:

	Three Months Ended
	March 31,
(in millions of U.S. dollars)	2012		2011
United States	$	506.2	$	534.9
Foreign	12.4		12.1
Revenues	$	518.6	$	547.0

Domestic and foreign long-lived assets (property, plant and equipment, net) were as follows:

(in millions of U.S. dollars)	March 31, 2012		December 31, 2011
United States	$	138.4	$	140.7
Foreign	8.3		8.2
Property, plant and equipment, net	$	146.7	$	148.9